NESR shifts gears as revenue surges 35% on Middle East expansion

National Energy Services Reunited (NASDAQ:NESR) delivered a powerhouse performance for the fourth quarter on Tuesday, as a sharp acceleration in Middle Eastern field activity propelled the company toward a record-breaking 2026.

The Houston-based firm, a dominant provider of oilfield services in the Middle East and North Africa (MENA), reported fourth-quarter revenue of $398.3 million.

This represents a staggering 34.9% increase over the previous quarter and a 15.9% rise year-over-year.

The top-line surge was primarily driven by high equipment utilization and the successful mobilization of new, multi-billion dollar contracts in Saudi Arabia and Oman.

While core operations thrived, bottom-line results were tempered by $24.1 million in discrete charges, including non-cash technology impairments, credit loss provisions in Oman, and restructuring costs.

These charges brought GAAP net income to $7.8 million.

However, investors focused on the company’s core earnings power.

Adjusted EBITDA hit $84.4 million, a 32% sequential improvement, while adjusted net income more than doubled from the third quarter to $31.9 million.

The results underscore the scalability of NESR’s model as it begins to service massive long-term awards from national oil companies (NOCs) like Saudi Aramco.

The most significant shift in NESR’s profile is the rapid strengthening of its balance sheet.

The company generated $264.2 million in operating cash flow for the full year, allowing it to slash its net debt to $185.3 million—a reduction of nearly $90 million compared to 2024.